The FBR Non-Filer Ban On Cars and Property introduces stringent restrictions to enhance tax compliance across Pakistan. Non-filers will face significant penalties, including bans on purchasing vehicles over 800cc, opening bank accounts, and acquiring or transferring property. The government has intensified its efforts to ensure all individuals and businesses register for tax compliance, with severe consequences for non-compliance.
Key Details About the FBR Non-Filer Ban On Cars and Property
The Revenue Amendment Bill 2024, presented by Finance Minister Muhammad Aurangzeb, includes the following critical measures:
- Non-filers are prohibited from purchasing vehicles exceeding 800cc.
- Property purchases and transfers by non-filers are restricted beyond specified limits.
- Non-filers are barred from opening new bank accounts.
- Banking transactions beyond a set threshold will not be allowed for non-filers.
- Non-filers cannot purchase shares exceeding a defined value.
However, non-filers will still be permitted to purchase motorcycles, rickshaws, and tractors.
Penalties for Unregistered Businesses
The bill outlines significant consequences for unregistered businesses:
- The bank accounts of unregistered business owners will be blocked.
- Property transfers will be halted for individuals who fail to register for sales tax.
- The government will have the authority to seal properties and businesses of unregistered individuals.
- The Federal Board of Revenue (FBR) will issue a list of individuals whose accounts will be frozen.
Bank accounts frozen due to non-registration will be restored within two days of sales tax registration. Appeals for restoring frozen accounts may be directed to the Chief Commissioner.
Additional Provisions
The restrictions will be enforced following an official notification from the federal government. Parents, spouses, and children (up to 25 years of age) of a filer will also be considered filers, ensuring extended compliance within families.
Broader Implications of the Law
The FBR Non-Filer Ban On Cars and Property underscores the government’s commitment to enforcing tax obligations across the nation. By closing loopholes and tightening regulations, the initiative aims to foster economic stability and ensure a level playing field for compliant taxpayers.
The bill has been referred to the National Assembly Finance Committee for further deliberation, demonstrating the government’s proactive stance on strengthening the country’s tax framework.
Implementation Timeline
The restrictions detailed in the bill will take effect once the federal government issues an official notification, ensuring adequate preparation for stakeholders.
The FBR Non-Filer Ban On Cars and Property represents a landmark effort to enforce tax compliance, promote economic transparency, and support Pakistan’s fiscal growth.
In a bold move to boost tax compliance and expand Pakistan’s tax base, the FBR aims to eliminate the non-filer category. This major reform will restrict non-filers from purchasing property, buying vehicles, investing in mutual funds, opening current accounts, and engaging in international travel, except for religious purposes.
FBR Chairman Rashid Mahmood Langrial stated that this policy shift is a key part of the government’s broader transformation strategy to increase tax revenue and hold non-filers accountable.
